Was on the e-way today when I went to downshift into fourth accidenrtly hit second and now my car is missing and can hear it in the exhaust. It also is lacking about 25% power. Was thinking it may be the timing belt . Any sugestions

Did you let the clutch out all the way in second? How fast were you going? This would be called a money shift; search that phrase.

I took a look at the moneyshift and it seems to be the problem. It started missing at the off ramp but tsill idles ok. Hear the miss in the exhaust and think I hear a ticking that wasnt there before. Drove about 15 miles home and still starts up but dont want to drive it.

was doing about 60 and went to pass slower driver and yes I let the clutch out all the way but for just long enough to realize I had screwed up. I definatly think it was a money shift since the previous owner said he did the same thing and it had valve train noise when I first got it about three years ago. Shift bushings are pretty sloppy. I am wondering if I should just upgrade to the larger head while its down. I would like to redo mains and rod bearings also since it will be down for about the next six months. Any one have any parts at reasonable prices?

if you have a super eta which i think you said you do in another post, i sell head swap kits SPECIFICALLY for the super eta.
http://forums.bimmerforums.com/forum/showthread.php?t=747943
that doesnt inlcude the head because you car has the "i" head already.
That would be 450-500 for a remanufactured head from me.
Generally cost 310 for the head to be machined with a 3 angle valve job, resurface, and porting, with port matching.
I can get a good bottom end but its gonna cost some money to ship something that heavy O_O